hsa resource center consumer presentation

Health Savings Accounts &

the CelticSaver HSA Health Plan

CelticSaver HSA3.0 Consumer 3/09

Your agent—and Celtic Insurance Company—are committed to serving you. Thank you for taking time to see how the CelticSaver HSA can help you meet your health insurance needs!

This presentation is designed to give you an overview of the CelticSaver HSA Health Plan and Health Savings Accounts (HSAs).

Presentation Topics

Introduction to HSA ProgramsThe CelticSaver HSA Health PlanOverview of Celtic’s Product Portfolio

Introduction to Health Savings Account Programs

The growing number of individuals and families with no health insurance

Research shows that people of all ages and income levels are choosing HSA Programs to meet their needs

The rising cost of health care Consumers are experiencing rising costs for medical services, drugs, supplies, and insurance premiumsHSA Programs provide major medical coverage and a savings account to help manage health care costs

Increasing popularity of consumer-driven health plansConsumers are taking more control over how their health care needs are met and financed The U.S. Treasury Department projects that by 2010, HSAs will grow to cover 25-45 million people*

Health Savings Account Programs help address…

*Source: US Treasury’s HSA Website www.treas.gov/offices/public-affairs/hsa/.

Two Components of an HSA Program

Qualified HDHP Health Savings Account

CelticSaverHSA Health

Plan& HSA

Consumers must have coverage under an HSA-qualified “High Deductible Health Plan” (HDHP) to open and contribute to a Health Savings Account.

Why are consumers buying HSAs?HSA Programs give you:

More control over how your health care needs are met and financed:

you may price-shop, ask more questions, get more involved in prevention and treatment

Tax savingstax deductions on HSA contributionstax-free withdrawals for qualified medical expensestax-free earnings on dollars accumulating in the HSA

Health insurance coverage – protection against high or unexpected medical bills

Account ownership and portability

Source: US Treasury’s HSA Website www.treas.gov/offices/public-affairs/hsa/.

Who can have an HSA?

Any adult can contribute to an HSA if they:

are covered under an HSA-qualified HDHP (such as the CelticSaver HSA)

have no other first-dollar medical coverage (other types of insurance like specific injury insurance or accident, disability, dental care, vision care, or LTC insurance are permitted)

are not entitled to benefits under Medicare

can’t be claimed as a dependent on someone else’s tax return


HSA Contributions – the basicsAnnual tax-deductible contribution can be up tothe IRS allowed maximums. For 2009:

Single coverage: $3,000 Family coverage: $5,950

Contributions can be made by the account holder, employer, or both. The account holder takes the tax deduction.

Contributions can be made in one or more payments at any time prior to April 15 of the following year.

People between the ages of 55 and 65 can make additional “catch up” contributions. For 2009: $1,000


HSA Qualified ExpensesYou can use the money in your savings account to pay for many types of medical expenses, even some that are excluded from your insurance plan. Some examples:

Rx drugsOTC drugsChiropractic careReading glassesDiaper rash treatmentMaternityElective surgery (i.e. Lasik)

Allergy medicineOxygen equipmentBand-aidsDoctor’s fees Dental services

Visit http://www.irs.gov/pub/irs-pdf/p502.pdf for more information about qualified medical expenses.

Generally, health insurance premiums are not qualified expenses, except for the following:

Qualified long-term care insuranceCOBRA health care continuation coverageHealth care coverage while an individual is receiving unemployment compensationMedicare premiums and out-of-pocket expenses, including deductibles, copays, and coinsurance for Parts A,B,C, and D.

Visit http://www.irs.gov/pub/irs-pdf/p502.pdf for more information about qualified medical expenses.

HSA Qualified Expenses


Disbursements – the basics

Withdrawals from an HSA used for qualified medical expenses are tax-free if taken for the insured individual, spouse, or dependent. The spouse and dependent(s) do not need to be covered by the underlying HDHP.

Withdrawals not used for qualified medical expenses are included in gross income for tax purposes and are taxed an additional 10%.


The CelticSaver HSA Health Plan

CelticSaver HSA Health PlanStandard plan features:

Eligibility: Individuals, ages 18 to 64½ years, and their dependents

Plan choices: fully-steered PPO and Managed Indemnity

Deductible (and coinsurance) choices:

$10,000 (100%)$5,000 (100%)$5,150 (100%)$2,600 (100%)$3,000 (100%)$1,500 (100%)

$5,150 (80/20% of the next $24,000)

$2,600 (80/20% of the next $12,000)

$3,000 (80/20% of the next $36,000)

$1,500 (80/20% of the next $18,000)

FamilyIndividual

CelticSaver HSA Health PlanStandard plan features:

Single family deductible

Rx and non-preventive office visit coverage after deductible

Preventive Care Eligible expenses covered up to $300 per person, per calendar year; includes up to $50 for routine eye exams; subject to deductible and coinsurance

Preventive Care Option Eligible expenses covered first-dollar up to $300 per person, per calendar year; includes up to $50 for routine eye exams

Standard plan features:$7 million lifetime maximum per insured

Additional emergency room deductible: $250 per visit (waived if admitted to hospital)

Rate guarantee: premium will not change during the first 12 months of coverage

Preferred and non-tobacco user rates are available for eligible applicants

CelticSaver HSA Health Plan

CelticSaver HSA is simple and easy to understand

Enjoy various tax advantages of the HSA

You can buy the health plan without the HSA

Freedom to use any HSA administrator

Why purchase the CelticSaver HSA?

Enjoy the benefits of a high-deductible health plan and HSA:

Why purchase the CelticSaver HSA?

Celtic is Rated B++ (Good) by A.M. Best

Celtic is committed to excellent policyholder service

Celtic’s plans can be mixed-and-matched to meet your health insurance and budgetary needs

A committed company:

Superior HSA Support

Your insurance agent—your best resource!

Celtic’s customer service (800) 477-7870

Celtic’s website: www.celtic-net.com

There are a number of services available to help answer your questions about your health insurance policy and Health Savings Account:

Celtic’s Product Portfolio

Celtic’s Product Porfolio

Celtic offers a portfolio of plans to meet a wide range of individual and family health insurance needs.

In addition to the CelticSaver HSA, you can choose from

Celtic BasicCeltiCare PreferredCeltic Short-Term

Plan availability and benefits may vary by state. Contact your agent for more information.

Celtic Basic Health Plan

Highlights:80/20% coinsuranceRange of deductiblesLow non-preventive office

visit copay$5,000,000 lifetime max.Built-in network savingsRx drug coverageRx Drug OptionInitial 12-month rate

guarantee

Product Availability:Individuals, ages 6 months through 64½years, and their dependents

Likely Prospects:19-34 year-oldsYoung families40+ aged consumers


CeltiCare Preferred Health Plan


Likely Prospects:Individuals and families with no employer coverageConsumers who need a flexible, comprehensive plan with options

Highlights:3 plan choicesHealthy Lifestyle ProgramLow office visit copaysPreventive care coverage$7,000,000 lifetime max.Initial 12-month rate guaranteeRx drug coverageRx Drug OptionSupplemental Accident Option

Plan availability and benefits may vary by state. Contact your District Sales Manager for more information.

Short-Term Health Plan

Highlights:Range of deductiblesMajor medical plan80/20 coverage to $5,000 $2 million lifetime max.Length of coverage:

1-6 mos.Applicants can apply up to 3

times for a total of 12 months of coverage

Emergency coverage outside U.S.


Likely Prospects:Recent college gradsMilitary dischargesThose awaiting group coverage Anyone needing to fill a gap in coverage


(800) 477-7990www.celtic-net.com

Important Note: The information contained in this presentation and in any accompanying literature is not intended to provide full details of Celtic plans and may change at the discretion of Celtic Insurance Company. Complete terms of coverage are outlined in the individual Certificate Booklets and set forth in the applicable insurance Policy and Trust agreement. In applying for coverage, the primary insured agrees to be bound by the Certificate. The benefits described here and any accompanying literature are the standard benefits offered by Celtic. Policy provisions vary in some states.

Plan availability and benefits may vary by state.

Celtic Insurance Company does not provide tax, investment or legal advice. Federal and state tax laws may change and are subject to interpretation. If tax, investment or legal advice is requested, consumers should seek the services of a licensed professional.

3/09

We hope this presentation was helpful. After learning the basics, you’ll have questions your agent or tax professional can help you answer. Thank you for your interest in Celtic!

hsa resource center consumer presentation

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